A class action lawsuit has been filed against Youtube influencers promoting the bankrupt crypto asset platform FTX.
A group of prominent Youtubers is facing a class action lawsuit from FTX investors. In addition to promoting FTX, the creators are also allegedly promoting the exchange’s yielding accounts (YBA), which are alleged unregistered securities.
Lawsuits involving Many Celebrities Still Continuing
A class action lawsuit filed in the Miami division of the U.S. District Court for the Southern District of Florida alleges that some prominent YouTube influencers promoted the sale of FTX’s YBAs to millions of followers without disclosing how much they were paid by the exchange.
The lawsuit was filed by Edwin Garrison, a US citizen and Oklahoma resident, and other victims residing in Canada, Australia and the United Kingdom. All of these victims had YBA accounts on FTX.
Influencers sued include Kevin Paffrath, Brian Jung, Graham Stephan, Ben Armstrong, Tom Nash and Creators Agency founder Erika Kullberg.
After FTX’s bankruptcy, Paffrath, Stephan, and Nash removed videos from their YouTube channels and posted apology videos instead.
There are also many famous names who are in trouble with the lawsuit filed by FTX victims. These names include NBA legend Shaquille O’Neal, Japanese Tennis athlete Naomi Osaka, Tom Brady, Gisele Bündchen, Trevor Lawrence and Kevin O’Leary.
After FTX’s bankruptcy, the professional basketball team Golden State Warriors, which had a contract with FTX, was also sued.
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